This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What can you learn from the figure below (Figure 13-1 from the text) which depicts the U.S. GNP and ... (Read 211 times)

luminitza

  • Hero Member
  • *****
  • Posts: 555
on: Jun 30, 2018
What can you learn from the figure below (Figure 13-1 from the text) which depicts the U.S. GNP and its components for the year 2009?
 
  What will be an ideal response?

Question 2

Discuss the effects of a rise in the dollar interest rate on the exchange rate.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tkempin

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

The highest component of GNP is consumption and the U.S. has a negative current balance.

Answer to Question 2

There are two effects to consider. A rise in the interest rate offered by dollar deposits combined with a constant expected exchange rate will cause the dollar to appreciate (see Figure 14-5 from the text). However, the expected exchange rate will likely change. As Figure 14-6 from the text shows, if the expected exchange rate increases, the dollar will depreciate.

Figure 14-5

Figure 14-6


luminitza

  • Member
  • Posts: 555
Reply 2 on: Jun 30, 2018
Wow, this really help

steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

(A) Figure illustrating the location and appearance of a peptic ulcer in both the stomach and the du (A) Figure illustrating the location and appearance of a peptic ulcer in both the stomach and the du
Pneumothorax. Figure illustrates how puncture of thoracic wall and tearing of pleural membrane allow Pneumothorax. Figure illustrates how puncture of thoracic wall and tearing of pleural membrane allow
Lab: Learn Orders in Class Insecta Lab: Learn Orders in Class Insecta
front muscle figure front muscle figure
In this cartoon, Boss Tweed welcomes cholera—a skeletal figure of death carrying a handbag from “Asi In this cartoon, Boss Tweed welcomes cholera—a skeletal figure of death carrying a handbag from “Asi
Mobilize the joints in the hand. Follow with figure-8s at the knuckles and scissoring the ... Mobilize the joints in the hand. Follow with figure-8s at the knuckles and scissoring the ...
Video: Magnetic resonance imaging (MRI)

For a complete list of videos, visit our video library